Apache Corporation Valuation Report, July 2010-Strategic and Operational Analysis

Sept. 16, 2010 - PRLog -- Summary
GlobalData's "Apache Corporation Valuation Report, July 2010-Strategic and Operational Analysis" report provides detailed financial information for Apache Corporation, an independent company, engaged in the exploration, development, and production of crude oil, natural gas, and natural gas liquids. The company owns a diverse and balanced oil and gas portfolio globally. Apache has E&P operations in seven regions spanning across five continents, including on the US Gulf Coast, US Central, Egypt, Australia, the North Sea, Canada and Argentina. The North America region (the US Gulf Coast, Central and Canada) contributed around 48% of the total production whereas the International region (Egypt, Australia, the North Sea and Argentina) contributed around 52% in 2009. The company has achieved economies of scale in all its operating regions, which enables it to reduce its per unit costs of production and operational risks. No single region contributed more than 27% of production in 2009, indicating that the company has a well-diversified asset portfolio.



Table of Contents
1 Table of contents 3
1.1 List of Tables 6
1.2 List of Figures 7
2 Apache Corporation, Company Overview 10
3 Apache Corporation, Watchlist for 2010 14
4 Apache Corporation, Investment Summary 15
4.1 Apache Exploring Significant Potential in Australia to Drive its Development Activities 15
4.2 Apache Utilizing Creative Technologies on Mature Assets to Enhance Its Production and Efficiency 17
4.3 Apache Strengthening Its Geographical Footprint in the International Market to Exploit Upcoming Opportunities; Most Diverse Asset Portfolio amongst Its Peer Group 17
4.4 Strategically Fit Upcoming Assets Assure Long Term Production; Securing Shareholders Value 19
4.5 Strong Liquidity Position through Optimized Capital Structure 21
4.6 Apache Recent Acquisition in Kitimat LNG Terminal Will Help the Company to Exploit Natural Gas Export Market Efficiently 22
5 Apache Corporation, SWOT Analysis 24
5.1 Strengths 24
5.1.1 Strong Geographical Revenue Base 24
5.1.2 Advanced Technology Capabilities 24
5.2 Weakness 24
5.2.1 Declining R/P Ratio in North Sea Region 24
5.3 Opportunities 24
5.3.1 Exploration Interest in Chile 24
5.3.2 New Upcoming Projects 24
5.3.3 Interest in Throughput Capacity of Kitimat LNG Terminal 25
5.4 Threats 25
5.4.1 Loosing Market Share to its Peers 25
6 Apache Corporation, Goals and Strategies 26
6.1 Expanding E&P Operations through Drill Bit While Also Exploring Acquisitions Opportunities 26
6.2 Extending Presence in GOM Deep Water Projects; Leveraging its Experience of North Sea and Australia 26
6.3 Diversifying Its Portfolio Globally; Still Competing In Its Core Regions 27
7 Apache Corporation, Production Overview 29
7.1 Production Profile 29
7.2 The US 29
7.3 Canada 30
7.4 Egypt  31
7.5 Australia 31
7.6 North Sea 32
7.7 Argentina 32
7.8 Key Upstream Projects Update 33
8 Apache Corporation, Development Overview 34
8.1 Development Profile 34
8.2 The US 34
8.3 Canada 35
8.4 Egypt  36
8.5 Australia 36
8.6 North Sea 36
8.7 Argentina 36
9 Apache Corporation, Exploration and M&A Highlights 37
9.1 Merger of Mariner Energy 39
9.1.1 Deal Synopsis 39
9.1.2 Apache's Acquisition of Mariner Energy will further consolidate its Gulf Shelf Position 40
9.1.3 Apache's Acquisition of Mariner and its Subsidiaries (Edge Petroleum) Will Strengthen the Company's GoM Operations 43
9.1.4 Mariner Energy's Assets Overview 43
9.1.5 New Onshore Plays 43
9.1.6 Apache Acquired Mariner Energy at Premium 43
10 Apache Corporation, Outlook 45
11 Apache Corporation, Forecast Production and Financial Statements 46
11.1 Income Statement (2007-2014E) 48
11.2 Balance Sheet (2007-2014E) 49
11.3 Cash Flow Statement (2007-2014E) 50
11.4 Financial Ratios 50
12 Apache Corporation, Valuation 53
12.1 Net Asset Value 53
13 Apache Corporation, Peer Comparision 57
13.1 Share Price Performance 57
13.2 Operational and Financial Performance 57
13.3 Key Financial and Operational Ratio 60
14 Apache Corporation, Key Risks 63
14.1 Political Instability 63
14.2 Fluctuating Crude oil and natural gas prices 63
14.3 Reserves and Drilling operations 63
14.4 Competition 63
14.5 Significant Exposure Across trading, treasury and foreign exchange Risk 63
15 Apache Corporation, Detailed Financial and Operational Metrics 64
15.1 Apache Corporation, Results of Oil & Gas Operations Per BOE Produced, Q4 2008-Q4 2009 64
15.1.1 Results of Oil & Gas Operations Per BOE Growth Rates, Q4 2008-Q4 2009 64
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List of Tables
1.1 List of Tables
Table 1: Apache Corporation, Key Events, January 2009-April 2010 13
Table 2: Apache Corporation, Upcoming Assets in the Short Term, 2010 20
Table 3: Apache Corporation, Other Upcoming Assets, 2010 20
Table 4: Apache Corporation, Upstream Growth Profile, MMboe, 2010-2014 33
Table 5: Apache Corporation, Recent Transactions as a Buyer, 2009-2010 39
Table 6: Apache Corporation, Recent Transactions as a Seller, 2008-2010 39
Table 7: GlobalData, Net Asset Valuation on Mariner Energy, 2010 44
Table 8: Apache Corporation, Forecast Production ($m), 2007-2014E 46
Table 9: GlobalData, Price Forecast, 2010E-2014E 47
Table 10: Apache Corporation, Income Statement ($m), 2007-2014E 48
Table 11: Apache Corporation, Balance Sheet ($m), 2007-2014E 49

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1.2 List of Figures
Figure 1: Apache Corporation, Global Operations, 2010 10
Figure 2: Apache Corporation, Financial & Operational Overview, 2006-2009 11
Figure 3: Apache Corporation, Share Performance, April 2009-April 2010 12
Figure 4: Australia, State-Wise Natural Gas Production, 2002-2008 15
Figure 5: Apache Corporation, Upcoming Assets in Australia, 2010 16
Figure 6: Apache Corporation, Australia Forecast Production, 2010E-2015E 16
Figure 7: Apache Corporation, Production Across Diversified Regions, 2009 18
Figure 8:    Apache Corporation, International Production Comparison With Domestic Production, 2005-2009 18
Figure 9: Apache Corporation, International Production Peers Comparison, 2009 19
Figure 10:   Apache Corporation and Peer Group's Debt/Total Capitalization Ratio Comparison, 2007-2009 21
Figure 11: Apache Corporation, Contractual Obligation, 2010 & Beyond 22
Figure 12: Kitimat LNG Terminal Proximity With Asian Market, 2010 23
Figure 13:  Apache Corporation's Acquired GoM Deep Water Assets From Mariner Energy Inc, 2010 27
Figure 14: Apache Corporation, Diversified Asset Portfolio, 2010 28
Figure 15: Apache Corporation, Total Production From Upstream Assets, MMboe, 2006-2014E 29
Figure 16:  Apache Corporation, The US Production From Upstream Assets, MMboe,  2007-2014E 30
Figure 17:   Apache Corporation, Horn River Expected Production in Comparison With Total Canada Production, MMboe, 2010E-2014E 31
Figure 18: Apache Corporation, Total Production By Region, MMboe, 2007-2014E 32
Figure 19: Apache Corporation, Granite Wash-Utilizing Technology to Unlock Potential, 2010 35
Figure 20: Apache Corporation, Horn River Basin-Long Tern Natural Gas Resource, 2010 35
Figure 21:  Apache Corporation,  Comparison of Exploration Cost and Reserve Addition Through Drill bit, 2006-2009 37

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